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Reply to: MSC - Part2
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Previously on "MSC - Part2"
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Originally posted by Money Money MoneyWhere did this info come from please? Any links?
Thanks
http://www.itcontractor.com/Articles...81&photopage=0
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You'll have no problems. The Revenue are targetting companies that set up "schemes" for numbers of individual contractors, as distinct from professional firms of accountants offering tax and accountancy advice to contractors and freelancers.
Originally posted by BigbirdInteresting read, thanks!
Are these the definitions from 61b ITEPA then? (which I have been unsuccessfully googling all morning! )
Having spoken to the Revenue yesterday I still don't know if I am going to be classed as a scheme provider.
For the last 3 years I have been offering a book-keeping service for small businesses (including a few PSC Ltds) and also providing registered office and Co Sec services for some of "my" PSCs.
I cannot decide if under the new definitions I am exempt from the MSC provisions because I provide "accountancy services" (although I'm not a qualified accountant, subcontract to a couple though so provide referrals for audit or advice which is outside the scope of my knowledge), or included in them because as Co Sec and day-to-day administrator I am effectively actively involved in the management of the Companies. HMRC don't know either.
It's doing my head in. On the one hand I have had a number of queries recently from people who are coming out of MSCs to see if I can help them set up and run their own companies, which I would like to take up cos they will obviously grow my own business significantly. On the other, if I get classed as an MSC provider then regardless of their contract terms and working practices they will automatically be classed as within the new regs because I do work for them and will have to have their income subject to PAYE!
Talk about catch 22............
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Interesting read, thanks!
Are these the definitions from 61b ITEPA then? (which I have been unsuccessfully googling all morning! )
Having spoken to the Revenue yesterday I still don't know if I am going to be classed as a scheme provider.
For the last 3 years I have been offering a book-keeping service for small businesses (including a few PSC Ltds) and also providing registered office and Co Sec services for some of "my" PSCs.
I cannot decide if under the new definitions I am exempt from the MSC provisions because I provide "accountancy services" (although I'm not a qualified accountant, subcontract to a couple though so provide referrals for audit or advice which is outside the scope of my knowledge), or included in them because as Co Sec and day-to-day administrator I am effectively actively involved in the management of the Companies. HMRC don't know either.
It's doing my head in. On the one hand I have had a number of queries recently from people who are coming out of MSCs to see if I can help them set up and run their own companies, which I would like to take up cos they will obviously grow my own business significantly. On the other, if I get classed as an MSC provider then regardless of their contract terms and working practices they will automatically be classed as within the new regs because I do work for them and will have to have their income subject to PAYE!
Talk about catch 22............
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Originally posted by BluebirdBlanket classification on the MSC scheme provider
If a single company is identified as an MSC under the new law then it will apply to all limited companies made available by that provider.
So now it’s no longer a matter of whether the MSC has control, if your provider has “controlled” or “influenced” you or other contractors in ANY way then you will be caught under these new definitions.
It will only take one individual to fail the definition for all contractors to pay full PAYE.
Parties to be excluded from the MSC regulation
1. Providers of professional “legal and accountancy advice” are specifically excluded from the MSC legislation.
2. Umbrella companies (i.e. those based on PAYE and not dividends) or limited companies operating within IR35 are NOT covered by the MSC legislation.
3. Limited companies operating in side IR35 and paying a deemed salary.
It is imperative that contractors now seek advice from qualified professional companies such as chartered accountants rather than those who were composite providers yesterday and are accountants today.
The recent 500% increase in company registrations was mainly due to composite providers (MSC’s) creating companies to transfer their contractor clients into, but Treasury have seen through this and have changed tack to focus on the small number of MSC providers rather than the thousands of individual companies.
Where did this info come from please? Any links?
Thanks
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MSC - Part2
Blanket classification on the MSC scheme provider
If a single company is identified as an MSC under the new law then it will apply to all limited companies made available by that provider.
So now it’s no longer a matter of whether the MSC has control, if your provider has “controlled” or “influenced” you or other contractors in ANY way then you will be caught under these new definitions.
It will only take one individual to fail the definition for all contractors to pay full PAYE.
Parties to be excluded from the MSC regulation
1. Providers of professional “legal and accountancy advice” are specifically excluded from the MSC legislation.
2. Umbrella companies (i.e. those based on PAYE and not dividends) or limited companies operating within IR35 are NOT covered by the MSC legislation.
3. Limited companies operating in side IR35 and paying a deemed salary.
It is imperative that contractors now seek advice from qualified professional companies such as chartered accountants rather than those who were composite providers yesterday and are accountants today.
The recent 500% increase in company registrations was mainly due to composite providers (MSC’s) creating companies to transfer their contractor clients into, but Treasury have seen through this and have changed tack to focus on the small number of MSC providers rather than the thousands of individual companies.Tags: None
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